Manpower Minister Ida Fauziyah made the remarks in a statement received here on Wednesday.
The substances detailed in the new regulation are an improvement on those contained in the previous one, specifically Law Number 11 of 2020 on Job Creation, she added.
"Improvement of substances on employment contained in Perppu 2 of 2022 is actually (part of) the government's efforts to provide adaptive protection to workers or laborers in facing employment challenges, which have grown more dynamic," the minister said.
She explained that some items regarding the employment sector, such as those covering outsourcing, have been improved in the new regulation. The Job Creation Law does not lay down restrictions on the types of work that can be outsourced, but the new regulation is different.
“With this arrangement, not all types of work can be handed over to outsourcing companies. Later, the types or forms of work that can be outsourced will be regulated through Government Regulations," she informed.
The regulation also makes improvements and adjustments to the calculation of the minimum wage, which will now consider economic growth, inflation, and certain indexes. The formula for minimum wage calculation has been stipulated in the regulation.
The new regulation highlights that the governor is obliged to set the provincial minimum wage. The governor can also set the minimum wage if the results of the calculation are higher than the provincial minimum wage.
The new regulation confirms the obligation of employers to implement a wage structure and scale for workers and laborers who have worked for one year or more.
Moreover, it stipulates the use of disability terminology in accordance with Law Number 8 of 2016 about People with Disabilities.
References have also been made to improvements in the article that addresses the use of the right to rest for which the salary will still need to be paid in full, as well as the benefits of the Job Loss Guarantee program.
Fauziyah said that the changes were made after the government received inputs on the Job Creation Law from some places, such as Manado, Medan, Batam, Makassar, Yogyakarta, Semarang, Balikpapan, and Jakarta.
Studies on the subject were also conducted by several independent institutions.
"Based on these things, the government then conducted discussions on substances that need to be changed. The main considerations are job vacancies creation and increase, protecting workers and laborers, as well as business continuity," she said.
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Translator: Prisca T V, Mecca Yumna
Editor: Azis Kurmala
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